AfDB approves a $24m equity investment to strengthen EADB capacities
The African Development Bank (AfDB) approved on January 15th a $24 million (€18 million) equity investment in the East African Development Bank (EADB).The African Development Bank (AfDB) approved on January 15th a $24 million (€18 million) equity investment in the East African Development Bank (EADB).
According to the Institution, $10 million (€7.5 million) will be “paid in” with the balance in the form of callable capital.
EADB is a sub-regional development bank belonging to four member states: Kenya, Uganda, Rwanda and Tanzania.
The AfDB hopes to strengthen the EADB balance sheet and help improve its international credit rating, with a view to promoting the development of capital markets, as well as generating revenues for governments and trade with foreign countries.
The long-term objective is to stimulate economic development and employment opportunities in the region.
In addition to providing new resources to EADB, the project will contribute to improving the quality of the callable capital of the bank, which is a major factor in its credit rating.
EADB, with its field presence and knowledge of local markets in East Africa, will also provide a logical conduit for AfDB to reach out to end-customers, including SMEs.